The deal concerns ongoing federal government investigations, specifically the investigation into Glaxo’s sales and marketing practices begun by the U.S. Attorney’s office of Colorado in 2004 and later taken over by the U.S. Attorney’s Office of Massachusetts, as well as the U.S. Department of Justice’s investigation of possible inappropriate use of the nominal price exception under the Medicaid Rebate Program; and the Department of Justice’s investigation of the development and marketing of diabetes medicine Avandia.

Analysts say Glaxo’s move will reduce financial uncertainty for the diversified group, which at the end of September had legal provisions on its balance sheet totalling £2.9 billion, representing some £1 billion more than the amount required for the U.S. deal.